The most effective ways to transfer to Malaysia for businesses

Malaysia is a key hub for Hong Kong businesses expanding into Southeast Asia. Whether it's paying suppliers, service providers, employees, or freelancers, many Hong Kong companies need to regularly remit funds to Malaysia. This article will help you understand the most effective ways to transfer money to Malaysia and other important considerations.

Why transfer to Malaysia?

Malaysia is one of Southeast Asia's wealthiest countries. According to a HKTDC research report, it is the third-largest economy in ASEAN. Its central location makes Malaysia a strategic gateway for Hong Kong businesses to enter the Southeast Asian market and to better understand their consumer behaviour.

Moreover, while the cost of living in Malaysia is relatively lower, the ethnic Chinese population makes up a significant portion of its residents, accounting for approximately 22.8% of the total population. With consumption patterns similar to those in Hong Kong, Malaysia is an ideal market for Hong Kong companies to test and refine their business strategies.

Using Malaysia as a springboard into the Southeast Asian market requires collaboration with local partners – from retail and wholesale to logistics and marketing teams. Transferring funds to Malaysia is an essential part of the financial operation process.

3 popular ways to transfer funds to Malaysia

As Hong Kong and Malaysia are close economic partners – with Malaysia being Hong Kong's fifth-largest trading partner globally in 2023 – the transfer systems between the two are well-established. There are three main channels for sending money to Malaysia.

1. Bank wire transfer (SWIFT)

Hong Kong businesses can make cross-border transfers using the SWIFT network through traditional banks. These transfers typically arrive within one to five business days, depending on the processing speed of the transferring and intermediary banks. Errors in account details, such as names or codes, can also cause delays.

When using SWIFT to transfer to Malaysia, businesses will face a wire transfer fee of HK$50–200 per transaction. They may also need to pay currency conversion fees and other hidden costs, such as correspondent bank fees, which can range from HK$100 to HK$300. 

2. Online transfer platforms

Online platforms like Airwallex and Wise have become a popular choice for many businesses. They are known for their transparent transaction fees, which help you avoid the hidden charges often associated with traditional banks.

These platforms are faster and more affordable compared to SWIFT. For example, through Airwallex’s local payment network, it only takes as quickly as one business day to send money to Malaysia, with no transaction fees and a conversion fee as low as just 0.2% above ‌interbank rates.

3. Transfer agents

Western Union and MoneyGram are well-known transfer agents that offer flexible and fast services. They can complete a transaction in minutes, making them ideal for urgent situations.

Transfer agents can also process transfers even if the recipients do not have a bank account and allow them to pick up cash directly. However, these services typically come with higher fees and less competitive currency exchange rates.

How to choose the right transfer method to Malaysia

To choose the best transfer method for your business, consider key factors such as transfer frequency, transaction value, speed requirement, and supplier preferences.

• Transfer frequency: If your business needs to make small, frequent transfers to Malaysia, cost control should be a priority. For large-value transactions with Malaysian suppliers, security and reliability take precedence.

• Transfer amount: Both banks and third-party platforms often have maximum transaction limits. Transfers exceeding these limits via SWIFT will incur additional surcharges.

• Speed and urgency: If your products have short lead times and require quick replenishment, you may need to use a faster, though more expensive, transfer agent to ensure funds are available for pickup in a short time.

• Security and compliance: Malaysia has specific foreign exchange controls, so it’s essential to choose a channel with regulatory compliance in place to ensure your transfers are legal and safe.

• Supplier preferences: Some suppliers may prefer to be paid in other currencies or in cash. Choosing a transfer method that meets their needs can help you build and maintain a stronger business relationship.

Important considerations for Hong Kong companies transferring to Malaysia

Due to Malaysia’s foreign exchange controls, Hong Kong companies must prepare supporting documents, such as commercial invoices and contracts, to ensure smooth transfers, particularly for large transactions.

Also, to comply with international and Malaysian anti-money laundering regulations, Hong Kong companies must provide clear documentation of the source of funds for large transfers to avoid unnecessary delays.

Features and benefits of using Airwallex to transfer to Malaysia

Airwallex provides Hong Kong businesses with a comprehensive cross-border transfer solution that’s efficient, transparent, and cost-effective, making it an ideal choice for businesses that need to regularly transfer funds to Malaysia to pay suppliers and employees.

1. Fast and complete transfers: Through Airwallex’s extensive global network, transfers can be processed within the same business day. 

2. Market-leading conversion rates: Hong Kong businesses can convert currencies into MYR for as low as 0.2% above the interbank exchange rate, with no hidden fees.

3. Support multi-currency: Airwallex supports over 60 currencies. Companies can transfer funds directly in MYR to local bank accounts in Malaysia and avoid intermediary bank fees.

4. Batch transfers: Airwallex enables businesses to send payments to multiple recipients simultaneously with automated reconciliation. This is especially convenient for Hong Kong businesses that pay Malaysian employees on a regular basis. 

5. Security and compliance: Airwallex is equipped with multi-layered security measures and meets the highest international security standards, including PCI DSS, SOC 1, and SOC 3. It also adheres to local regulatory requirements to ensure the safety of your funds and mitigate compliance risks. 

How to send money to Malaysia with Airwallex

You can easily transfer to Malaysia in three quick steps:

1. Sign up for an Airwallex global business account and activate it following the simple verification process

2. Add funds into your account and convert them into MYR with our market-leading interbank rate

3. Initiate a transfer by selecting the recipient, entering the amount, and confirming the transfer. The recipient will receive the full amount in as fast as one business day

Frequently asked questions

1. How long does it take to transfer to Malaysia? 

The time varies by method. Traditional SWIFT transfers typically take 1–5 business days. Platforms like Airwallex can complete the transfer in as fast as one business day.

2. How much does it cost to transfer to Malaysia?

Costs vary depending on the transfer method you choose.

If you transfer to Malaysia through traditional SWIFT, the wire transfer fee ranges from HK$50 to HK$200, plus currency conversion fees and potential hidden costs, such as correspondent bank fees of HK$100–300.

Through Airwallex, you can transfer with $0 cross-border transfer fees via our local network.

3. What currencies does Airwallex support?

Airwallex supports over 60 currencies, including AUD, CAD, CNY, DKK, EUR, HUF, INR, IDR, JPY, MYR, NZD, GBP, SGD, KRW, VND, and more.